Presentation to the Kwinana Communities and Industries Forum.

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Presentation transcript:

Presentation to the Kwinana Communities and Industries Forum

Natural Gas – why it’s important to Western Australia WA is the nation’s largest producer and user of natural gas More reliant on natural gas than any other state Natural gas fuels over half of Western Australia’s primary energy needs and 60 per cent of its electricity generation

Domestic gas has fundamentally changed the WA economy. (Circa 1980)

“Western Australia’s economic future is inexorably tied to the development and use of the state’s large reserves of natural gas.”* *Economics and Industry Standing Committee, March 2011.

DomGas Alliance formed in Driven by serious concerns about availability and price of long-term gas supplies WA is 60% reliant on gas for electricity generation Many businesses are exporters and need to be internationally cost-competitive WA is a project-driven economy with long-term investments and large sustaining capital expenditure Our members include significant employers with multiplier effects in both jobs and expenditure About the DomGas Alliance

The outlook for gas supply in Western Australia…

Maintenance of domestic reservation policy Continued domestic supply requirements for NWS venture Supply side responses such as tougher retention lease policy, access to third party infrastructure Removal of joint marketing exemption (review 2015) Accelerate development of unconventional gas Federal Energy White Paper; recognise job and economic growth potential of domestic gas supply Balanced policy approach to deliver growth of LNG exports while ensuring domestic supply for local industry and jobs Key issues for DomGas Alliance

What the WA community thinks: 86% say “very” or “extremely” important that WA has access to gas. 78% say growing the local economy is number 1 priority for our gas (17% say LNG export) 89% support the State’s gas reservation policy 96% say the Commonwealth should have a similar reservation requirement Source: March 2014 FlashPoll, Paterson’s Research Group

Contact: Matt Brown, Executive Director Mobile:

Additional slides if required during Q&A

Domestic reservation policy has not impacted on exploration investment

Domestic reservation policy has not harmed the LNG export industry